Hell Is Freezing Over -- Again! -- November 20, 2014; The Desert Tortoise Wins Out; Apache To Sell Non-Core Assets

From The Los Angeles Times

The Bureau of Land Management on Thursday denied a renewable energy company's application to build a controversial wind and solar farm in the Mojave Desert's remote Silurian Valley, deciding the sprawling project "would not be in the public interest."

The closely watched decision is considered a bellwether for how the federal agency will handle future requests to develop renewable energy projects outside established development areas.

Jim Kenna, the BLM's California director, made the decision, finding that Iberdrola Renewables' proposal would have industrialized 24 square miles of "a largely undisturbed valley that supports wildlife, an important piece of the Old Spanish National Historic Trail, and recreational and scenic values."

Kenna said he had been discussing the matter for weeks with field personnel and found the evidence "pretty persuasive."

He cited concerns that the project would degrade the quality of the wilderness surrounding the proposed site, located between two national parks. He also noted potential hazards to the desert tortoise and other impacts that could not be mitigated.

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Apache To Sell Non-Core Assets

I always enjoy the phrase "non-core assets." I assume "non-core" is in the eye of the beholder, or in this case, the eye of the CEO. Once a company starts selling "core" assets, it's all over. So, of course, if any assets are being sold, an investor must hope they are non-core. Whatever. Rigzone is reporting:

Apache Corp. will sell non-core oil and gas assets in southern Louisiana and the Anadarko Basin in two transactions valued at approximately $1.4 billion as the company focuses on growing its North American onshore liquids production.

The Houston-based company will sell its working interest in approximately 90,000 net acres of mature fields in southern Louisiana. Production from these fields, which have high decline rates and short reserve lives, produced around 21,000 barrels of oil equivalent per day – of which 62 percent was natural gas and natural gas liquids (NGL) – net to Apache during this year’s third quarter.

Apache will retain its 275,000 mineral acres in southern Louisiana.

In the Anadarko Basin, Apache will sell approximately 115,000 net acres in part of its Stiles Ranch field in Wheeler County, Texas, and in its Mocane-Laverne and Verden fields in western Oklahoma. Net production from these properties averaged 26,000 boepd in the third quarter of 2014; 83 percent of this production was gas and NGLs.

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All That Talk About Germany Banning Fracking ... So Much Talk

Reuters via Rigzone is reporting:

Germany's government plans to stop short of an outright ban on the controversial technique of fracking for gas, bowing to pressure from industry, according to the latest draft of a law from the environment ministry seen by Reuters.

Fracking or hydraulic fracturing to extract gas and oil has transformed the U.S. energy market, boosting domestic supplies.

The process is banned in France on environmental grounds. It is allowed in Britain but has strict environmental and safety guidelines.

German industry is concerned that its competitiveness is being hurt by rising energy costs at home compared to lower prices in the United States which has seen a fracking boom. A deterioration in ties with Russia over the Ukraine crisis has also raised pressure on Europe, especially Germany, to cut its reliance on Russian gas and fuelled the fracking debate.

Germany is drawing up new fracking rules, and has promised strict environmental audits and a ban on drilling in areas where water is protected due to possible environmental damage.

We won't see much, if any fracking, in Germany in my investing lifetime. Talk, so much talk. Maybe that would make a good poll ten years from now: where will see fracking next: New York or Germany? LOL.